Income Tax
01.The Paycheck Share
When adults work and earn a paycheck, they don't get to keep every single dollar. A portion of their earnings is taken out before they even get the money! This is called income tax, and it's the government's share of your earnings.
02.Federal and State Income Taxes
In the US, most workers pay federal income tax to the national government and state income tax to their home state. These taxes are used to fund national programs like defense, healthcare, and federal parks.
03.Withholding
Employers calculate income tax and send it directly to the government on behalf of the worker. This is called withholding. It ensures that taxes are paid slowly throughout the year instead of all at once.